Accounting: What the Numbers Mean 9th Edition by Wayne W McManus, Daniel F Viele, David H Marshall

Exercise 8

Identify accounts by category and financial statement(s) Listed here are a number of financial statement captions. Indicate in the spaces to the right of each caption the category of each item and the financial statement(s) on which the item can usually be found. Use the following abbreviations:

Step 1 of 2

Assets:

An asset is a resource which generates or can generate economic benefits for an organization. It is controlled by the organization and can be converted into cash.

Liabilities:

It is an obligation of an organization. It arises as a result of previous business transactions or events. These are classified as short term and long term.